Friday, October 10, 2008

Money matters.


If there is a part of you that thinks the economy just can't be this bad, then THIS professor of economics at the University of Chicago agrees with you. It's worth a read.

And HERE is our reminder to keep investing.

So what do we think? Are we near the bottom? How much lower will it go?

11 comments:

mamacita said...

Aw hell, what am I going to do with all these cans of pork-and-beans now?

Anonymous said...

Well, those are good news.

I do actually agree that this is a good time to stay in the market and buy more stock if possible. I'm in my 30's, though.

The people getting hurt right now were making risky investments too close to retirement, using their houses as banks or overextending on credit/mortgages.

The economy/banks collapse because people pull their money out and panic. Fortune favors the brave, not the wussy.

Anonymous said...

My daughter will be headed off to college in 5 years. We liquidated all her stocks in the summer on worries that the market was not the place to be. Looking at where things are this morning, had we not sold we would have lost $41,000.
It's sitting in cash in the bank and I am ready to take it home and put it in the family safe!
I do not think we are at the bottom. FEAR is driving this market.

the quarter rat said...

Anon 6:55
YOUR fear.

Anonymous said...

Yes, of course my fear!
Work your ass off to get your kids educated and then lose it all. Not on my watch.

Carrie said...

I'm planning to quit my perfectly good job in a few months so I can move to Canada with no connections or jobs lined up (no, not election-related). So I'm hoping it doesn't get much worse, yeah.

That said, any extra money I make between now and then is totally going into my mutual fund. I'm 25; it'll go up by the time I need it.

Anonymous said...

I wouldn't really trust what someone affiliated with U of Chicago economics department has to say about the economy. It seems like the biggest supporters of Bush's economic policies come from the U of Chicago.

Alison said...

Read a bunch of ecomomist's thoughts. Someone said in downturns, p/e ratios have always gone down to 11, and it's not there yet, so we're not at the bottom. Graphically, we're heading to where we would have been w/o the dot com bubble and the Real estate bubble, which is actually comforting. The dot com bubble was irrational too, and it was only 10 yrs ago--cool heads will prevail. Unfortunately, the brains we need to stop the bleeding and reassure prisoners, uh, investors, are on their coffee break...

Anonymous said...

Consumer emotion has always impacted the economy whether it is today’s fear or yesterday’s irrational exuberance. I’m afraid the economy is still in free fall, only most of us don’t have a golden parachute.

Ivy Lane said...

mamacita..you kill me! :)~ we gotta just hang in!! it will all work out!!

s. said...

The market as a whole still has a long way further to fall, but there are lots of individual stocks that are good buys now. I wouldn't be picking up any mutual funds, but if you have the time, understanding and maybe a good financial advisor bounce ideas off, you can do your research and pick up some fabulous deals even now.

Let's all remember to donate generously to food banks, scholarship funds and to organizations working with mental health patients this season... they're going to have a lot of new clients' in the months to come.